Forex technical analysis: USDJPY finding support at 200 hour MA/109.00 level

Technical Analysis

Author: Greg Michalowski | usdjpy

Bond yields are a little lower today...

The USDJPY has drifted lower in trading today. The price dipped to a new low as NY traders entered for the day. In the process, the price fell below the 200 hour MA at 109.046. There is also some 10 AM fx option cuts. There is rollovers at the 109.00-109.20 area. The price trades in between those levels (after a brief move to 108.974).  

Let's face it, there is not a lot going on.  

Technically,the pair has tried to go higher this week, but the path to the upside has been full of ups and down. The break above the 200 hour MA (first time since April 10th) should have solicited buying, but the peak could only reach just above the 38.2% retracement and the topside trend line. Today's move lower is like the rest of the week - ups and downs - but with more of a bearish bias.  

Get below 109.00 and we may see more selling but there is plenty of support targets including the 100 day MA at 108.82, that may get in the way.